Do Property Values Increase or Decrease Over Time?
If you’re considering buying a house or have a property already and want to invest in it: it’s not uncommon for homeowners to be nervous about whether their home’s value will increase or not.
This is everything you need to know about property value’s growth- or falling.
Why They Increase Over Time
When in good condition, all properties should grow in value over time. Part of this is due to inflation, but a large part is due to the ever-growing and changing real estate market. Between 2020 and 2021, many properties gained 10 to 20% of their home’s value back simply because of the market heating up. If you’re nervous and asking yourself, ‘what is my home worth,’ you’re not alone since it’s harder to predict without a professional these days.
What Can Hurt a Property’s Value
If you’re nervous about hurting your property’s value, there are a few things that can do that. Outdated interior throughout is a big one since it means the buyer will have to take on a lot of work to bring it into modern times. Another is flooding and physical damage to the home.
Unfortunately, neighbors who don’t keep up with their yard or have weird design tastes can even hurt your property value. This is why so many people opt for a neighborhood that has an HOA (Home Owners Association) to ensure your property value is protected.
How You Can Improve Your Property’s Value
If you want to add more value to your home, it’s simple! The important rule is to never invest more than 20% of your property’s value into any one room: but from here, you can have fun reinventing it. Make sure to go for a more timeless, less personalized look, when selling. Pay attention to which renovations offer the best return for the work and money put into them: a small kitchen renovation has a higher return on investment than a major kitchen renovation.
If you’re ready to sell, take the time to stage your home. Make the house’s layout look more pleasing to the eye by placing furniture in a way that guides people through and allows them to see only what you want them to see. Staged homes sell faster and often for more money than comparable unstaged properties.
How to Ensure You’re Getting a Good Deal
If you’re buying a home and you want to make sure it’s not overinflated, there are a few things you can check! The first is the tax history, which will tell you if it’s suddenly gained or lost value within the last ten years. Sometimes this history can show you flooding the owners didn’t tell you about because of a sudden property value drop during a bad storm year. Then, of course, you can also have a property appraised by your realtor when you decide to walk through it.
Every Property, When Well Maintained, Should Gain Value
Whether you’re buying your first property or you’re considering selling one you’ve had for years, it’s important to know that most properties gain value over time. Take the time to invest in your home, and you’ll be able to add even more value to it. Incorporating eco-friendly features like a residential solar energy system can significantly enhance your property’s long-term sustainability while concurrently boosting its market worth, making it an attractive option for environmentally-conscious buyers and those seeking to cut down on utility costs.
Are you selling your house and preparing to move to Italy? Check out our section about Living in Italy.
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